Falfurrias exits investment in Capital Bank

Hugh McColl-founded private equity firm Falfurrias Capital partners has ended its investment in Capital Bank Financial Corp., another institution led primarily by Bank of America alumni. 

Falfurrias sold 275,000 shares in the bank last week, garnering about $6 million, according to a document filed with the Securities and Exchange Commission. The Charlotte private equity firm no longer owns shares in the bank.

"It's all about strategy for us," Falfurrias managing partner and former Bank of America CFO Marc Oken tells me. "Capital Bank is one of the finest banks in the Southeast. But the reality is that bank stocks are constrained." Oken cited low interest rates and regulatory pressure as weights on bank stocks.

Known as North American Financial Holdings at the time, the bank raised $900 million from a number of investors in 2009 with a strategy of buying up troubled banks. It went public in September 2012, and shares are up about 25 percent since then. Capital Bank is headquartered in Coral Gables, Fla., but has corporate offices in Charlotte. It's led by former Bank of America executives Gene Taylor and Chris Marshall.

PITTENGER SAYS CFPB IS AMONG 'MOST UNACCOUNTABLE AGENCIES IN AMERICAN HISTORY': U.S. Rep. Robert Pittenger, the Charlotte Republican, criticized the Consumer Financial Protection Bureau's organizational structure and funding on Capitol Hill on Tuesday, saying it has led to "overly burdensome regulation and overly aggressive enforcement action." The remarks came as a House Financial Services Committee panel kicked off a hearing looking at the numerous legislative proposals to change the fledgling regulator.

BIG BANK SETTLEMENTS TOP $65 BILLION: And more will be coming. SNL Financial is out with another of its periodic running tallies of megabank legal settlements on Tuesday, and it shows banks have topped $65 billion in legal settlements -- without even including JPMorgan Chase's $5.1 billion settlement with the FHFA last week. Bank of America makes up about two-thirds of the total.

****This is a preview The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****

Sign up for our morning email newsletter or find out more here.